Which of the Following Is Not True for an Operating

question 28

Multiple Choice

Which of the following is not true for an operating segment according to U.S. GAAP?

• A) Discrete financial information generated by the internal accounting system is available.
• B) The segment earns revenues and incurs expenses.
• C) The segment is regularly reviewed by a chief decision maker to assess performance decisions.
• D) The segment is regularly reviewed by a chief decision maker to make resource allocations.
• E) An organizational unit cannot be an operating segment if all of its operating transactions are only with other segments of the organization.

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Definitions:

Brainstorming

A collaborative idea-generating activity aimed at finding a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members.

Nominal Group Technique

Nominal Group Technique is a structured method for group brainstorming that encourages contributions from all participants, often used in decision-making.

PDCA

"Plan-Do-Check-Act," a four-step management method used in business for the control and continuous improvement of processes and products.

Cyclical Process

A process that repeats in a series of cycles, where the end of one cycle is the beginning of the next, common in natural and economic systems.